Every state in the US requires drivers to get car insurance coverage except one. New Hampshire, the only state that doesn’t require auto insurance, does expect drivers to provide proof that they can pay for car accidents when they occur.
Most people get car insurance because they’re legally obligated to do so. However, that doesn’t mean you shouldn’t look for the best car insurance plans! These plans can help you navigate several potential threats when driving.
Unfortunately, though, many car insurance myths permeate our society. These myths sometimes make people hesitant about buying insurance.
Fortunately, you can eliminate that fear today! We’ll discuss some of the most popular myths about car insurance below. Let’s get started right away!
Car Color Affects Insurance Rates
Unfortunately, many people believe that color can impact their insurance rates. This fear leads people to buy cars in colors they wouldn’t otherwise prefer to avoid high rates.
The truth is, color does not factor into your insurance rates. Myths like “Arrest Me Red” have no bearing on what you’ll pay. Instead, your insurance rates depend on factors like:
- car make and model
- body type
- engine size
- vehicle age
- repair costs
These factors make much more sense when determining how to insure an automobile. Notice that vehicle age impacts the insurance possibilities for a car. In the next section, we’ll discuss whether the driver’s age plays a part in insurance costs.
It Costs More to Insure a Car When You Get Older
In reality, older drivers often qualify for auto insurance discounts. Most drivers over 55 can get reduced insurance premiums by completing an accident prevention course.
Similarly, retirees can often get cheaper insurance prices for their vehicles. The rationale is that these older adults won’t drive as often. They have lower chances of getting into accidents.
In contrast, younger drivers and first-time car buyers often receive higher insurance rates than their older counterparts. The reason for these higher rates is that these drivers have less experience on the road.
As such, they are more likely to have driving accidents. To offset this likelihood, insurance companies charge higher rates.
So, why does this myth about insurance prices rising with age exist? Usually, it’s because the longer you drive, the more accidents you get in.
In fact, many states require you to get a proof of insurance called SR-22 once you’ve had an accident. You’re welcome to learn more about this certification here.
Your Credit Doesn’t Impact Your Insurance Rate
Many people believe that their credit score won’t affect their insurance rates. This pervasive myth is one of the most misleading.
Your credit-based insurance score could impact your future insurance rates. Good credit scores show that drivers can manage their finances well.
Your credit score can also help you find the best price for your first car. Reach out to the three credit agencies to discover what your credit score is!
Avoid These Car Insurance Myths and Get the Insurance You Need
These car insurance myths pervade the popular culture but have no bearing on insurance costs. Instead of listening to these ideas, avoid them and look for the best policies.
You can find smart insurance policies regardless of your age or car color. Likewise, you can improve your insurance rates by improving your credit score. So, use this information to find the insurance prices you need!
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